New investment in renewable energy, energy efficiency and urban development projects across Greece will be supported following the first agreement under a new EUR 650 million infrastructure investment initiative.
The National Bank of Greece is the first partner bank under the Infrastructure Fund of Funds and will identify and invest in new projects expected to include wind and photovoltaic parks, biomass and biogas plants, energy efficiency in public and company buildings. Urban projects intended to rehabilitate and revitalize deprived districts and as well as water and waste management and tourism are also expected to benefit.
In addition, the National Bank of Greece will provide own funds and help mobilize additional private funds for the financing of these projects. Other leading banks active in Greece are also expected to become partners under the Infrastructure Fund of Funds.
The Hellenic Ministry of Economy and Development established the Infrastructure Fund of Funds with the EIB with the aim of maximizing the impact of European Structural and Investment Funds, along with national funds sourced from an EIB loan and proceeds from previous urban investment under the JESSICA initiative.
Once fully operational the new infrastructure scheme will provide financing of EUR 450 million unlocking total investments of at least EUR 650 million for sustainable projects in the priority sectors. The European Structural and Investment Fund contribution comes from the Operational Programme Competitiveness, Entrepreneurship and Innovation 2014-2020.
“Local investment is essential to harness renewable energy, cut energy use and improve urban areas and unlock projects that have been delayed in recent years. The Infrastructure Fund of Funds combines financial resources and technical expertise essential for priority and high impact investment. The European Investment Bank is pleased to work with National Bank of Greece, the first partner under this new initiative, and we look forward to scaling up the program in the coming months,” said Andrew McDowell, European Investment Bank Vice President responsible for Greece.
“The Infrastructure Fund of Funds agreement will further strengthen our long-standing cooperation with the European Investment Bank Group. Providing financing solutions for infrastructure that also foster sustainable development and inclusive growth is a key element of National Bank of Greece’s strategy. This agreement reinforces our strategy and underlines our unequivocal commitment in supporting the transition to a greener economy, focused on the protection of the environment and the promotion of resource efficiency while creating new jobs and supporting the country’s economic recovery,” added Paul Mylonas, CEO of the National Bank of Greece.
The National Bank of Greece and the European Investment Bank, which will manage the new fund, agreed details of the first EUR 32 million component to be made available for investment.
Photos courtesy of EIB.